Texas property tax rates vary by county and school district, not by state law

Texas has no state income tax, but it does have property tax. The amount you pay depends entirely on where your property sits—your county, school district, city, and special districts all set their own tax rates. There is no single Texas property tax rate. A home worth $300,000 in one county might cost $3,000 a year in property tax, while the same home in another county could cost $6,000 or more.

The tax is calculated by multiplying your home's appraised value by the combined tax rate of all the taxing units that serve your property. The appraised value is set by your county appraisal district, not by what you paid for the home or what it might sell for today. That appraisal is the starting point for every tax bill.

Key Takeaways

  • Your property tax bill is your home's appraised value multiplied by the combined tax rates of your county, school district, city, and any special districts serving your property.
  • Texas property tax rates range from roughly 0.4% to 2.5% of appraised value depending on location, with school districts making up the largest share in most areas.
  • Your county appraisal district sets the appraised value, and you can challenge it if you believe it is too high.
  • Homeowners over 65 and disabled homeowners may may have access to for exemptions or deferrals that reduce or delay property tax payments.
  • Your tax bill arrives in October or November and is usually due by January 31st, though you can pay in two installments.

How the tax rate is built from multiple layers

Your property tax bill comes from four types of taxing units stacked on top of each other. The school district usually takes the largest share—often 40% to 50% of your total bill. The county comes next, then your city (if you live in one), and finally special districts like hospital districts, water districts, or fire districts that may serve your property.

Each of these units sets its own tax rate, measured in dollars per $100 of appraised value. A school district might set a rate of $1.06 per $100, the county $0.48 per $100, the city $0.35 per $100, and a hospital district $0.08 per $100. Add those together and you get $1.97 per $100, or roughly 1.97% of your home's appraised value. On a home appraised at $300,000, that would be about $5,910 a year.

The rates change every year because each taxing unit votes on its budget and sets a rate to cover it. A school district that needs more money might raise its rate; a city that had a good year might lower its rate. You can find your specific rates by contacting your county appraisal district or checking your last tax bill, which lists every rate that applies to your property.

What your home's appraised value actually means

The appraised value is not the price you paid, the price you could sell it for, or the price your neighbor paid. It is the value your county appraisal district assigns for tax purposes. The appraisal district is required by state law to appraise all property at its "market value"—what a willing buyer would pay a willing seller—but in practice the appraisal is often lower than the actual market value, especially in fast-growing areas.

Your appraisal district reappraises property every year, though the change in value from year to year is usually capped. In most years, your appraised value can only increase by 10% or less, even if your home's market value jumped higher. This cap protects homeowners from sudden tax spikes, but it also means your appraised value can lag behind reality for years.

You receive a notice of appraised value in the mail, usually in April or May. If you believe the value is wrong, you can file a protest with your appraisal district. You do not need a lawyer or an appraisal of your own—you can straightforward explain why you think the value is too high, provide evidence (comparable sales, photos of needed repairs, or a professional appraisal if you have one), and attend a hearing. Many protests are successful, especially if you can show that your home sold recently for less than the appraised value.

Typical property tax rates across Texas counties

Texas property tax rates vary widely. Some rural counties have combined rates around 0.4% to 0.6% of appraised value, while urban counties often run 1.5% to 2.5%. The variation depends on how much each taxing unit spends and how much property value exists in the area to spread the cost across.

School districts account for most of the variation. A wealthy suburban school district with a large tax base might set a rate of $0.80 per $100 of value, while a rural district with fewer students and less property wealth might set a rate of $1.50 per $100 to fund the same services. Counties and cities also vary, but the school district is usually the biggest factor in your total bill.

To find the actual rates for your property, check your most recent tax bill—it lists every rate that applies. You can also contact your county appraisal district or visit the appraisal district's website, which usually publishes the rates for all taxing units in the county.

Exemptions and deferrals that can lower your bill

Texas offers several exemptions that reduce the appraised value used to calculate your tax. A homestead exemption, available to homeowners who live in their home as their primary residence, typically reduces the appraised value by $25,000 to $50,000 (the amount varies by school district and county). This means you only pay tax on the remaining value.

Homeowners age 65 and older can claim an additional exemption that freezes their appraised value at the level it was when they turned 65. Even if your home's value rises, your tax bill stays the same. Disabled homeowners and disabled veterans also may have access to for exemptions and deferrals. A deferral lets you postpone paying property tax until you sell the home or pass it to your heirs, though the tax debt still exists.

You claim these exemptions by filing a form with your appraisal district, usually by April 30th of the year you want the exemption to take effect. The forms are available on the appraisal district's website or at their office. If you miss the important date, you can usually file late with a written explanation, though approval is not may provide.

When your tax bill arrives and how to pay it

Your property tax bill is mailed in October or November and is due by January 31st of the following year. You can pay the full amount at once, or you can split it into two installments: the first half due by January 31st and the second half due by July 31st. If you pay late, you owe a penalty and interest that grows each month.

You can pay by mail, in person at your county tax assessor-collector's office, or online through your county's website. Some counties allow automatic payments from a bank account. If you own a home with a mortgage, your lender may require you to pay property tax through an escrow account, meaning the lender collects the money from you each month and pays the tax bill on your behalf.

If you cannot pay your full bill, contact your county tax assessor-collector's office to ask about payment plans. Some counties offer installment agreements that let you spread the payment over several months, though you may owe interest or penalties depending on the county's policy.

Challenging your appraised value if you think it is too high

The protest process starts when you receive your notice of appraised value. You have about 30 days to file a written protest with your appraisal district. The protest form is straightforward—you state why you believe the value is wrong and provide evidence. Common reasons include recent repairs needed, a recent sale at a lower price, or comparable homes in your area that sold for less.

After you file, the appraisal district reviews your protest and either agrees with you (and lowers the value), disagrees (and keeps the value the same), or offers a compromise. If you disagree with their decision, you can request a hearing before the appraisal review board, a panel of local citizens who hear protests. You can attend the hearing in person, by phone, or by mail, and you do not need a lawyer.

If the appraisal review board still disagrees with you, you can take the case to district court, but this is expensive and most homeowners do not pursue it. However, many protests are resolved at the appraisal review board level, especially if you bring clear evidence like a recent appraisal or comparable sales.

Frequently Asked Questions

Does Texas have a state property tax rate?

No. Texas sets no statewide property tax rate. Each county, school district, city, and special district sets its own rate based on its budget. This is why property tax varies so much across the state.

Can I deduct property tax from my federal income tax?

Yes, if you itemize deductions on your federal tax return. The deduction is capped at $10,000 per year for all state and local taxes combined (property tax, income tax, and sales tax together). Most homeowners should consult a tax professional to see whether itemizing or taking the standard deduction saves them more money.

What happens if I do not pay my property tax bill?

The county can place a lien on your home, meaning they have a legal claim against it. If you do not pay for several years, the county can sell your home at a tax sale to recover the debt. Interest and penalties grow each month you do not pay, so it is important to contact your tax assessor-collector if you are having trouble paying.

How often does my home get reappraised?

Every year, though the increase in value is usually capped at 10% or less. This means your appraised value may not keep up with a rapidly rising market, but it also protects you from sudden tax spikes if your home's market value jumps.

Can I get a property tax exemption if I rent my home out?

No. Exemptions like the homestead exemption are only for homeowners who live in the home as their primary residence. Rental properties do not may have access to for most exemptions, though some special exemptions exist for agricultural land or certain business property.